Last week NSW Skills Minister John Barilaro announced fees would be fixed in 2016 for most government-subsidised vocational courses.

The fee-freeze "will provide confidence and certainty for students wanting to access vocational education and training in 2016 to build their skills and get a job", a spokesperson for the minister said.

But Mr Keeley said the move will only freeze the fees at the current, elevated levels introduced as part of the government's Smart and Skilled reforms to the sector.

"We're not just talking about a fee-freeze we're talking about a funding-freeze which means fees will be frozen at their current levels," Mr Keeley said.

"As was reported in the budget papers, that meant a loss of 30,000 student enrolments in TAFE. Smart and Skilled is the problem and the current fee structure and funding structure has had an immediate effect.

"We believe that they need to review Smart and Skilled, review the funding and fees that Smart and Skilled has imposed on students and TAFE's ability to provide the training and retraining needs for the region's future workforce."

The NSW Smart and Skilled reforms, which came into effect in January 2015, included expanding government subsidies to cover private registered training organisations (RTOs).

A review of all RTOs approved for NSW Government funding is currently underway to ensure contracts are meeting student and industry training needs.

"The Department of Skills and Industry is reviewing the size and scope of all contracts issues to RTOs to ensure they are adequate in supporting actual demand for training from students," a spokesperson for minister Barilaro said.

"The NSW Government will continue to support and provide options for students to access and successfully complete a qualification through vocational education and training."